Should we try 0% interest before bailing out auto industry?

View Poll Results: Should we give 0% interest rates a chance before considering a bail out?

Yes.

1

100.00%

No.

0

0%

Other.

0

0%

Voters: 1. You may not vote on this poll

Machjo

#1Dec 16th, 2008

The US Federal Reserve has now lowered interest rates to below 0.25% and will keep it hovering between 0% and 0.25% for the foreseeable future in order to counter the deflationary pressures countering that nation.

Do you think we should experiment with lowering our interest rates to 0% too to see if that's enough before bailing out the auto industry? It would seem to be worth a try before we just start spending like crazy. Lower interest rates would make it cheeper to borrow so maybe that alone would be enough to get more money out there. Granted, if this recession is going to go into depression, then even that might not be enough, but even then it might mean at least that we won't need to bail them out as much as otherwise.

Machjo

#2

Re: Should we try 0% interest before bailing out auto industry?

Dec 16th, 2008

Besides, it's not like there's any threat of inflation at the moment. If anything, the inflationary pressures of such a move would merely counter the deflationary pressures of a recession so as to bring inflation back up to... well... 0%.

Machjo

#3

Re: Should we try 0% interest before bailing out auto industry?

Dec 16th, 2008

Sorry, I screwed up in the title of the thread. I meant interest rate, not inflation. Sorry.